OpenAI, Oracle and NVIDIA: The AI Funding Loop
Originally published September 23, 2025. Updated October 29, 2026.
OpenAI reportedly agreed to buy $300 billion in computing services from Oracle over roughly five years. Oracle uses NVIDIA systems to supply AI computing capacity. Now NVIDIA has announced plans to invest up to $100 billion in OpenAI, putting the chip supplier in a position to help finance demand for its own products. www.investing.com
The arrangement connects three businesses: OpenAI needs computing power, Oracle builds and operates the infrastructure, and NVIDIA supplies the chips. NVIDIA’s proposed investment would give OpenAI more money to expand, supporting further spending on that infrastructure.
But the announcements are separate agreements, with different terms and timelines. NVIDIA’s September 22 announcement was a letter of intent, with investment planned as systems are deployed. The first phase was targeted for the second half of 2026. The reported Oracle contract was scheduled to begin in 2027. Neither figure represents money already paid in full. nvidianews.nvidia.com
That is what makes the relationship worth watching. A supplier is proposing to fund a major customer while cloud providers build the capacity that customer needs. The question is whether revenue from AI services will eventually cover the cost of the chips, data centers and financing behind them.
Update: October 29, 2026
The funding has since taken a different shape. OpenAI announced a financing round in February 2026 that included $30 billion from NVIDIA, alongside investments from Amazon and SoftBank. The original proposal for up to $100 billion should not be described as a completed investment. investing.com
Oracle’s latest update shows how much financing the infrastructure still requires. At its October 28 investor presentation, Oracle said it would limit additional capital raising through fiscal 2030 to $20 billion, excluding refinancing existing debt. It expects free cash flow to turn positive in the second half of fiscal 2028. Supplier financing, customer prepayments and customer supplied hardware are part of its plan to reduce upfront costs. investor.oracle.com
The financial ties remain. NVIDIA is investing in a customer that uses its systems, while Oracle is raising money to build capacity for customers including OpenAI. The money comes from several sources, but the same question remains: how much paying demand will there be for all this computing power?